Latest news with #Lagos-based
The Sun
2 days ago
- Business
- The Sun
Green bonds rise in Africa amid climate risks and high interest
LAGOS: It only took two days for Nigeria to raise $59 million through green bonds -- part of a funding drive for climate and environmental projects in a nation still hooked on oil. Africa remains a small player in the green bond market, and the debt instrument is underused -- but it is becoming a fast-growing source of funding for the world's poorest continent, which is at the forefront of climate change. Green bonds are similar to sovereign bonds: Investors are paid interest on what is essentially a loan to the government, but in this case the money funds environmentally friendly projects. But the continent's investment risk profile means that countries pay a high interest rate to borrow money. Nigeria is paying 19-percent interest on the green bonds it issued earlier in June. By comparison, France is paying three-percent interest on its latest green bonds. Nigeria's recent fundraising round is slated to put money into a slew of renewable energy, eco-friendly housing, conservation and infrastructure projects. 'Nigeria is a continental leader in the African green bond market,' Lagos-based law firm Udo Udoma & Belo-Osagie told AFP in a note. 'However, to unlock the full potential of green bonds, especially in Africa, we need stronger regulatory frameworks, better project pipelines, capacity-building for issuers and enhanced investor confidence.' - Green bonds on the rise - The continent accounted for only about $5 billion of the 2.2 trillion global green bond market in 2023, according to data from the Africa Policy Research Institute. But that came on the back of a 125 percent increase in issuances that year and 'significant growth' in the market, it said. Nigeria was the first African state to issue sovereign green bonds, selling $30 million in 2017 and then another $41 million in 2019. The west African nation was following an example set by Johannesburg in 2014, when the South African municipality paved the way on the continent by issuing nearly $140 million in green bonds to investors. Since then, Kenyan developer Acorn Holdings issued east Africa's first green bonds in 2019, raising more than $40 million to finance what it called environmentally friendly student housing. Tanzania's CRDB Bank launched its first green bonds in 2023, raising $300 million for financing renewable energy as well as infrastructure and water supply projects. The biggest coup came last year in Ivory Coast, where $1.5 billion was raised. Yet the continent remains underfinanced, with Nairobi-based nonprofit FSD Africa blaming 'unstable macroeconomic conditions,' a risky political and business environment and 'a shortage of bankable green projects'. Currency depreciation and high inflation also create risks for investors. In response, governments have to offer 'a risk premium to attract investors.' China and the United States, the world's two biggest polluters, dominate the green bond market as they seek ways to fund their energy transitions. Their leadership is not surprising 'given that they are carbon-intensive economies who have contributed more in the global climate crisis,' said Alex Oche, an environmental law expert at Nigeria's Institute for Oil, Gas, Environment, Energy and Sustainable Development. - Failed projects, 'greenwashing' - Africa is responsible for just roughly four percent of global emissions that contribute to climate change. Yet its poorer countries remain some of the least prepared to deal with the fallout of successive crises, from erratic rainfall to shifting fishing stocks, linked to rising global temperatures. 'The future of green bonds in Africa and globally is promising, but it will depend heavily on credibility, innovation and inclusive growth,' said law firm Udo Udoma & Belo-Osagie. Beyond an influx of cash, a better regulatory framework is also needed, experts said. Razaq Fatai, a researcher for Nigerian consulting firm Vestance, studied previous projects financed by green bonds and warned that several appeared to resemble 'greenwashing' -- including a reforestation project in Oyo state where 'the community was not involved' in the planning. 'After a couple of years, most of the trees were dying,' he said. 'If you continue to do that, continue to spend money like that, you just end up just wasting public resources, and then you have to pay interest on those debts that we encourage.'
Int'l Business Times
2 days ago
- Business
- Int'l Business Times
Green Bonds Offer Hope, And Risk, In Africa's Climate Fight
It only took two days for Nigeria to raise $59 million through green bonds -- part of a funding drive for climate and environmental projects in a nation still hooked on oil. Africa remains a small player in the green bond market, and the debt instrument is underused -- but it is becoming a fast-growing source of funding for the world's poorest continent, which is at the forefront of climate change. Green bonds are similar to sovereign bonds: Investors are paid interest on what is essentially a loan to the government, but in this case the money funds environmentally friendly projects. But the continent's investment risk profile means that countries pay a high interest rate to borrow money. Nigeria is paying 19-percent interest on the green bonds it issued earlier in June. By comparison, France is paying three-percent interest on its latest green bonds. Nigeria's recent fundraising round is slated to put money into a slew of renewable energy, eco-friendly housing, conservation and infrastructure projects. "Nigeria is a continental leader in the African green bond market," Lagos-based law firm Udo Udoma & Belo-Osagie told AFP in a note. "However, to unlock the full potential of green bonds, especially in Africa, we need stronger regulatory frameworks, better project pipelines, capacity-building for issuers and enhanced investor confidence." The continent accounted for only about $5 billion of the 2.2 trillion global green bond market in 2023, according to data from the Africa Policy Research Institute. But that came on the back of a 125 percent increase in issuances that year and "significant growth" in the market, it said. Nigeria was the first African state to issue sovereign green bonds, selling $30 million in 2017 and then another $41 million in 2019. The west African nation was following an example set by Johannesburg in 2014, when the South African municipality paved the way on the continent by issuing nearly $140 million in green bonds to investors. Since then, Kenyan developer Acorn Holdings issued east Africa's first green bonds in 2019, raising more than $40 million to finance what it called environmentally friendly student housing. Tanzania's CRDB Bank launched its first green bonds in 2023, raising $300 million for financing renewable energy as well as infrastructure and water supply projects. The biggest coup came last year in Ivory Coast, where $1.5 billion was raised. Yet the continent remains underfinanced, with Nairobi-based nonprofit FSD Africa blaming "unstable macroeconomic conditions," a risky political and business environment and "a shortage of bankable green projects". Currency depreciation and high inflation also create risks for investors. In response, governments have to offer "a risk premium to attract investors." China and the United States, the world's two biggest polluters, dominate the green bond market as they seek ways to fund their energy transitions. Their leadership is not surprising "given that they are carbon-intensive economies who have contributed more in the global climate crisis," said Alex Oche, an environmental law expert at Nigeria's Institute for Oil, Gas, Environment, Energy and Sustainable Development. Africa is responsible for just roughly four percent of global emissions that contribute to climate change. Yet its poorer countries remain some of the least prepared to deal with the fallout of successive crises, from erratic rainfall to shifting fishing stocks, linked to rising global temperatures. "The future of green bonds in Africa and globally is promising, but it will depend heavily on credibility, innovation and inclusive growth," said law firm Udo Udoma & Belo-Osagie. Beyond an influx of cash, a better regulatory framework is also needed, experts said. Razaq Fatai, a researcher for Nigerian consulting firm Vestance, studied previous projects financed by green bonds and warned that several appeared to resemble "greenwashing" -- including a reforestation project in Oyo state where "the community was not involved" in the planning. "After a couple of years, most of the trees were dying," he said. "If you continue to do that, continue to spend money like that, you just end up just wasting public resources, and then you have to pay interest on those debts that we encourage."
France 24
2 days ago
- Business
- France 24
Green bonds offer hope, and risk, in Africa's climate fight
Africa remains a small player in the green bond market, and the debt instrument is underused -- but it is becoming a fast-growing source of funding for the world's poorest continent, which is at the forefront of climate change. Green bonds are similar to sovereign bonds: Investors are paid interest on what is essentially a loan to the government, but in this case the money funds environmentally friendly projects. But the continent's investment risk profile means that countries pay a high interest rate to borrow money. Nigeria is paying 19-percent interest on the green bonds it issued earlier in June. By comparison, France is paying three-percent interest on its latest green bonds. Nigeria's recent fundraising round is slated to put money into a slew of renewable energy, eco-friendly housing, conservation and infrastructure projects. "Nigeria is a continental leader in the African green bond market," Lagos-based law firm Udo Udoma & Belo-Osagie told AFP in a note. "However, to unlock the full potential of green bonds, especially in Africa, we need stronger regulatory frameworks, better project pipelines, capacity-building for issuers and enhanced investor confidence." Green bonds on the rise The continent accounted for only about $5 billion of the 2.2 trillion global green bond market in 2023, according to data from the Africa Policy Research Institute. But that came on the back of a 125 percent increase in issuances that year and "significant growth" in the market, it said. Nigeria was the first African state to issue sovereign green bonds, selling $30 million in 2017 and then another $41 million in 2019. The west African nation was following an example set by Johannesburg in 2014, when the South African municipality paved the way on the continent by issuing nearly $140 million in green bonds to investors. Since then, Kenyan developer Acorn Holdings issued east Africa's first green bonds in 2019, raising more than $40 million to finance what it called environmentally friendly student housing. Tanzania's CRDB Bank launched its first green bonds in 2023, raising $300 million for financing renewable energy as well as infrastructure and water supply projects. The biggest coup came last year in Ivory Coast, where $1.5 billion was raised. Yet the continent remains underfinanced, with Nairobi-based nonprofit FSD Africa blaming "unstable macroeconomic conditions," a risky political and business environment and "a shortage of bankable green projects". Currency depreciation and high inflation also create risks for investors. In response, governments have to offer "a risk premium to attract investors." China and the United States, the world's two biggest polluters, dominate the green bond market as they seek ways to fund their energy transitions. Their leadership is not surprising "given that they are carbon-intensive economies who have contributed more in the global climate crisis," said Alex Oche, an environmental law expert at Nigeria's Institute for Oil, Gas, Environment, Energy and Sustainable Development. Failed projects, 'greenwashing' Africa is responsible for just roughly four percent of global emissions that contribute to climate change. Yet its poorer countries remain some of the least prepared to deal with the fallout of successive crises, from erratic rainfall to shifting fishing stocks, linked to rising global temperatures. "The future of green bonds in Africa and globally is promising, but it will depend heavily on credibility, innovation and inclusive growth," said law firm Udo Udoma & Belo-Osagie. Beyond an influx of cash, a better regulatory framework is also needed, experts said. Razaq Fatai, a researcher for Nigerian consulting firm Vestance, studied previous projects financed by green bonds and warned that several appeared to resemble "greenwashing" -- including a reforestation project in Oyo state where "the community was not involved" in the planning. "After a couple of years, most of the trees were dying," he said. "If you continue to do that, continue to spend money like that, you just end up just wasting public resources, and then you have to pay interest on those debts that we encourage." © 2025 AFP
TimesLIVE
19-06-2025
- Business
- TimesLIVE
Nigeria to introduce real-time tracking for oil export shipments
Nigeria's oil regulator is set to bring in a new rule that requires oil producers to obtain an export permit, vessel clearance and a unique identification number to enable real-time tracking of cargoes, based on regulations seen by Reuters. The government said the updated regulations are designed to enable real-time monitoring of oil cargo exports, aiming to combat theft and under-declaration at export terminals, and thereby significantly enhance government revenue. The new rules mark a significant departure from the previous system which only required producers to declare cargoes to customs authorities for export permit issuance. "The new guidelines represent a significant step toward a more transparent, accountable and efficient oil export regime in Nigeria," the spokesperson for the regulator said. Reinforcing the necessity of these changes, Ayodele Oni, an energy lawyer at Lagos-based Bloomfield law firm, said the previous system was not equipped for real-time tracking.
Yahoo
12-06-2025
- Politics
- Yahoo
In Nigeria, the juntas are history, but street names live forever
As President Bola Tinubu praised his country's quarter century of democratic rule Thursday, many of the streets around the Nigerian capital carried a different, perhaps less-inspiring message. To name a few: Sani Abacha Way takes commuters into downtown Abuja. Ibrahim Babangida Way meanwhile cuts through upscale Maitama. Murtala Muhammed Expressway passes next to the presidency and the National Assembly, where Tinubu delivered his Democracy Day speech. All three are named after the heads of military juntas. As other countries in west Africa have gone on a renaming spree -- mostly throwing out roads named for colonial figures -- Nigeria's strongmen have survived this final, symbolic purge. All eight of Nigeria's military leaders have at least one street named after them in the capital -- a fact that's often met with a shrug, even as Thursday's holiday celebrates the transition to civilian rule in 1999 after decades of coups and military rule. "Some leaders, because of their stature, a road can be named after them," said Ibrahim Hassan, 45, an employee at a corner store. "It's not about whether you've done the best for Nigeria." A woman ringing up her groceries, who gave her name only as Adekemi, chimed in with an indifferent laugh: "Right now I'm focusing on how to afford this." - 'House the military built' - Abuja -- a planned city that became Nigeria's capital in 1991 under Babangida -- "is the house that the military built, so naturally they paid homage to themselves" said Ikemesit Effiong, a partner at SBM Intelligence, a Lagos-based consultancy. While data from pollster Afrobarometer has shown consistent public support for democracy in Nigeria, "the military is still a formidable, well-regarded institution, seen by many as comparatively disciplined and well run" after 26 years of often chaotic civilian rule. Former military chiefs have also entered civilian politics, rehabilitating their image -- including Olusegun Obasanjo and Muhammadu Buhari, both elected president in the democratic era. In the United States and Europe, activists in recent years clamoured to have streets renamed to address colonial or racist legacies -- though those moves weren't always without pushback. In west Africa, including in Senegal and Ivory Coast, governments have ditched boulevards named after French leaders and renamed them after their own countrymen. "We have not fully grasped what democracy is about," lamented Edwin Ajibola, 42, who as an Uber driver, makes his living plying roads named after strongmen. Tinubu too, while praising in his speech "how far we had come as a nation", acknowledged that "we still have so much, and a lot, for that to go." Earlier this week, he found himself directly facing his predecessors' infrastructural legacy when the minister of the Federal Capital Territory renamed Abuja's International Conference Centre after the president. Amid the political squabbling in the aftermath, one former lawmaker suggested the move would unfairly obscure the head of state who oversaw its building: junta head Babangida. nro/tba/srg/cw
